April 12 (Reuters) - Gold prices fell on Monday as data
showing very strong readings for U.S. inflation and a faster
economic rebound bolstered Treasury yields, weighing on the
safe-haven metal.
FUNDAMENTALS
* Spot gold XAU= fell 0.2% to $1,740.57 per ounce by 0118
GMT. U.S. gold futures GCv1 were steady at $1,743.70 per
ounce.
* U.S. Treasury yields climbed on Friday after
higher-than-expected March producer price data showed inflation
had risen, echoing other reports that said the world's largest
economy was on a steady road to recovery from the pandemic.
US/
* Producer prices in the United States rose more than
anticipated in March, resulting in the highest annual rise in
9-1/2 years and signalling the start of higher inflation as the
economy reopens amid strengthened public health and substantial
government assistance. * Higher bond yields increases the opportunity cost of
holding bullion, which pays no return.
* However, according to Federal Reserve Chair Jerome Powell,
the U.S. economy is at an "inflection point," with hopes that
inflation and hiring will accelerate in the coming months, but
there are dangers if a hasty reopening leads to a continuing
uptick in coronavirus cases.
* Asian stocks traded cautiously on Monday as investors
await to see whether U.S. earnings will support sky-high
valuations, while bond markets will be checked by what could be
very strong readings for U.S. inflation and retail sales this
week. MKTS/GLOB
* Hedge funds and money managers raised their bullish
positions in COMEX gold and silver contracts in the week to
April 6, the U.S. Commodity Futures Trading Commission (CFTC)
said on Friday. CFTC/
* Silver XAG= fell 0.2% to $25.19 and palladium XPD= was
down 0.3% at $2,631.96 . Platinum XPT= stood steady at
$1,197.54.
DATA/EVENTS (GMT)
0900 EU Retail Sales MM, YY Feb
1200 India CPI Inflation YY March
1200 India Industrial Output YY Feb